Why March is the best Month to launch a new business in Kenya
16 February 2016, 13:53
Nairobi - If you want to launch a new business, product or service, then March is the best month. Why?
In the month of January, everyone still has the Christmas fever in them, the traffic is so slow people are all trying to pick up from where they left last year. In February, we are catching up and tend to focus so for an entrepreneur this is the time to start sending out E-mails informing the target audience of the new product /business to be launched so they can then book it in their calendars.
For the new month, the year is still young and many aspiring entrepreneurs will flirt with the idea of leaving their full time employment to start their own businesses. However, the current slowdown in economic growth and uncertainty will be enough to discourage even the most determined people from taking a leap of faith.
The reality is that times are tough. Therefore, entrepreneurs that are strong-willed to forge ahead with their business ideas will have to tread cautiously and be prepared to deal with the many risks and challenges associated with starting a new business.
Even when the economy is doing well, we still see about 90% of all start-ups in Kenya fail in their first year of inception.
Furthermore, in the beginning of the year the economy is not doing well and consumers often have less income at their disposal. So, during this time consumers are looking for value for money, and will not think twice about supporting any business that offers value.
Starting and operating a business when times are tough can often benefit the entrepreneur in the long-term, as it places the business in a good position to thrive when the economy recovers.
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Industry and competitor research —It is important to do thorough and comprehensive research about the industry and your competitors. Failure to do proper research is one of the reasons why most start-ups fail in the early stages.
Business plan — A watertight business plan which has been scrutinized to the finest detail is essential when starting a business in tough times. You simply cannot afford to let anything slip.
Capital — Before starting a business, make sure that you have enough capital to cover basic and unplanned business expenses. If things don’t go according to plans, you will find yourself in financial difficulties.
Outsource — Many new entrepreneurs often make the mistake of wanting to tackle everything on their own at the expense of the business. It is essential to outsource whenever possible. For example, you cannot be an accountant, fleet manager, events specialists, data capturer and managing director at the same time.
Risk management — When starting a business, it is essential to take all possible risks into consideration and be prepared to adequately deal with them. The first step is to compile a risk management plan.
Cash Flow management — Properly managing cash coming and going out of the business can often determine its success. Therefore, implementing good cash flow management principles from the onset is essential.
Customer needs — Identifying a customer problem that requires solving and creating a customer centric solution is absolutely key. Customers must accept that the problem they are experiencing needs solving, and that your solution is the one they want.
Pursuing transformative purposes — Entrepreneurs should attempt to solve problems that resonate with them, which are important enough for them to focus their efforts on, and continue to pursue, even when the going turns rough.
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